By Cindy Janisch
Sometimes the things we can not change end up changing us. There are many ups and downs in life and even if you have gone through a rough patch you can still examine your options when it comes to a Bad Credit Mortgage. While you might be in a bad situation, with financial stress and various collectors calling you, there might be some options to relive that stress with an Equity takeout.
There are several lenders that will grant approval to payout the following debts that are eating away at your personal health. Do you owe Taxes to the Canadian Revenue Agency, or behind on child support or alimony? Have you wanted to payout those high interest credit cards that keep hanging around and are never paid off?
Once you realize that your credit score is suffering due to too many late payments, inability to make minimum payments, a history of excessive credit pulls or collections that you have neglected to address. There are options beyond your bank or financial institution.
The lenders offering bad credit mortgages in Canada will charge higher interest rates as well as additional fees for funding the mortgage. However, these lenders are there for the short term and are only interested in setting up a 1 – 3 year term. The strategy is to get your outstanding debts paid out, maintain and rebuild your credit over the 1 – 3 years and move your mortgage back to a bank or lender with low rates.
Here are some products you can qualify for with a Bad Credit Mortgage:
You could be pleasantly surprised that by paying out all your high interest credit cards, auto loans, personal lines of credit and student loans, you may save more money paying a slightly higher interest rate on your mortgage for one year to consolidate all your payments into one. After correcting your credit score and requalifying for a new mortgage with a lower interest rate.
You may have good credit and strong income but if you owe taxes to the Canadian Revenue Agency then your bank or financial institution may not approve an equity take out to pay the taxes. We have lender that are willing to
Are you self employed? Yikes, that is not something that the banks like to see unless you are able to supply the bank with a full two year history on your Notice of Assessments, T1 Generals, Statement of Business Accounts, Articles of Incorporation, Financial Statements and the list goes on. Why not work with a lender who understands your business and will request less paperwork to verify your income. These lenders understand how you use your write off’s to your advantage, however, they are willing to lend funds to you with an interest rate that could be high. Give Cindy Janisch the opportunity to shop around to different lenders to find you the best mortgage terms, lowest fees and interest rates.
If you do not fit into the typical Bank Box and you know that you require a Bad Credit Mortgage from a lender that has the ability to look at your current situation and provide good terms and conditions to the mortgage, give Cindy Janisch a call to see what your options are.
©2021 Cindy Janisch, Mortgage Associate